In a recent decision, the Ohio Supreme Court held that Section 145 of the Restatement of the Law 2d, Conflict of Laws must be applied when determining the state law applicable to an insured’s bad faith claim. Noting that bad faith claims sound in tort, rather than contract, the Court rejected the application of Restatement Section 193, relating to insurance contracts, and reaffirmed Ohio’s long-standing jurisprudence holding that bad faith claims exist independent of the insurance contract itself.

Because Ohio permits discovery of privileged, attorney-client communications that are probative of an insurer’s bad faith conduct (See O.R.C. 2317.02(A)(2) and Boone v. Vanliner Ins. Co., 91 Ohio St.3d 209, 213, 744 N.E.2d 154 (2001)), the Court affirmed the lower court’s order requiring that the insurer produce privileged information that was relevant to the insured’s claim of bad faith.